Tesla Scraps Dojo Supercomputer AI Team As Elon Musk Abandons Internal Chip Effort: Report

Tesla Inc. TSLA has pulled the plug on its Dojo Supercomputer team, responsible for developing in-house AI capabilities, including self-driving chips and AI model training efforts.

Restructuring Teams, Talent Poached And A Shift To Outsource AI Development

Dojo Supercomputer's leader, Peter Bannon, will leave the company as CEO Elon Musk ordered the department to be shut down, Bloomberg reported on Thursday.

The report also outlined that over 20 employees had departed Tesla to join DensityAI, a newly formed company founded by former Tesla executives, including Ganesh Venkataramanan.

Musk, meanwhile, has ordered a reshuffling of the remaining Dojo team as they would be reassigned to other departments within Tesla, the report suggests.

The report also highlights that Tesla would look at companies like Nvidia Corp NVDA, Advanced Micro Devices Inc. AMD and Samsung Electronics SSNLF for its AI needs.

Tesla did not immediately respond to Benzinga's request for comment.

Tesla's Chip Deal With Samsung, Planned Robotaxi Expansion

The news comes as Tesla announced a deal with Samsung worth over $16.5 billion. The deal would see the Korean giant build AI6 chips for Tesla, powering the company's next-gen self-driving systems.

Meanwhile, Tesla's plans to roll out robotaxis in multiple cities to meet Musk's target of serving over half the population of the U.S. could face some challenges.

The company, despite announcing its ride-hailing service expansion in the San Francisco Bay Area, can't operate Robotaxis in the state as it does not have a permit.

Elon Musk's $29 Billion Pay Package And Dwindling Sales

Elsewhere, Tesla announced it will kick off compensation proceedings for Musk, awarding the CEO over 96 million company shares amounting to $29 billion in value as the company puts confusion over Musk's compensation to rest.

However, Tesla sales have continued to plunge, with the company experiencing double-digit declines in multiple markets like the UK, as well as France, Sweden and Denmark.

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